City counts on vehicles to finance budget
City counts on vehicles to finance budget
Bambang Nurbianto, The Jakarta Post, Jakarta
As in previous years, the Jakarta administration will rely
heavily on taxes paid by private car owners to finance its budget
in 2006.
According to the budget draft submitted to City Council for
deliberation on Monday, the Jakarta administration aims to
collect Rp 5.25 trillion (US$525 million), or 71.52 percent, of
Rp 7.34 trillion in total tax revenue targeted next year.
For the 2005 fiscal year, the city administration expected to
collect Rp 4.42 trillion from automotive tax revenue, compared to
Rp 6.12 trillion of total regional tax income.
The significant increase of automotive tax revenue is
consistent with the introduction of various new automotive fees
for document transers and sales documents.
The budget does not have a forecast on the total sales of
automotive products in 2006, but Governor Sutiyoso said
previously that the average annual growth of vehicle sales in the
capital reaches approximately 8 percent.
There are around 4.7 million vehicles in the capital, with
public transportation vehicles -- buses, taxis and minivans --
accounting for only 100,000 units.
The city administration has been encouraging Jakarta residents
to shift from private cars to public transportation, but the
appeal has largely fallen on deaf ears, partly due to poor public
transportation in the capital.
The administration estimated that the city's total income for
2006 would reach Rp 14.9 trillion, while the expenditure would
stand at around Rp 17.51 trillion. The deficit would be covered
by unspent budget money from the city's 2005 budget.
On the revenue side, the city expects Rp 8.4 trillion from
regional taxes, fees and dividends from state and city
enterprises, as well as Rp 6.38 trillion from the central
government.
Other significant regional income would come from fuel taxes
worth Rp 575 billion, hotel taxes at some Rp 500 billion,
restaurant taxes at around Rp 400 billion, Rp 150 billion for
entertainment taxes, Rp 225 billion from advertisement taxes, the
underground water taxes of Rp 60 billion and car park taxes of Rp
75 billion.
Regional fees are estimated to contribute Rp 400 billion or
7.25 percent higher than this year's figure. That money will come
from construction permit fees, at Rp 133.62 billion, health
service fees Rp 116.06 trillion, rental fees of regional assets
Rp 25 billion, vehicle emission tests Rp 21.79 billion and on-
street parking fees Rp 19 billion.
Meanwhile, the contribution of city-owned and joint venture
enterprises is expected to reach Rp 125 billion, compared to Rp
103.4 billion this year.
The funds will mostly come from PT Bank DKI Rp 38.69 billion,
PT Pembangunan Jaya Ancol Rp 35.06 billion, city market operator
PD Pasar Jaya Rp 20.74 billion, joint venture developer Jakarta
Propertindo Rp 6.20 billion and city water operator PD Pam Jaya
Rp 3 billion.